For RSA Insurance, it is almost as if the last decade did not happen. Just over 10 years since it came back from the brink of collapse, the perception of the 303-year-old general insurer has again been transformed from a solid business insuring households and businesses against unforeseen events to a company in crisis with no easy options for salvation.

The trouble began on 5 November, when RSA issued the first of three profit warnings. The group said claims had mounted from storms in the UK and Scandinavia and that it would need to strengthen its reserves in Ireland to meet growing motor claims for whiplash.

Three days later, RSA's Irish chief executive was ousted with two other senior managers and Ireland's regulators launched a probe of the business. A "routine internal audit" had shown up problems in the Irish claims and finance functions that would cost the group £70m.

Then, on Friday 13 December, the bombshell came. A review of the Irish operation had found further problems and RSA was forced to pay £130m into the business. The total £200m strengthening of the Irish reserves comes straight out of RSA's annual profit.

Simon Lee, group chief executive, quit with immediate effect, leaving RSA's fate in the hands of its chairman, Martin Scicluna. But Scicluna, a former chairman of Deloitte UK who has been at RSA for a year, has other directorships and lacks frontline insurance experience. It has taken just over five weeks for everything to unravel for the company that insured Captain James Cook in 1765, before the seaman's first voyage of exploration.

Scicluna has admitted that the group needs to raise more capital to stay within regulatory thresholds and that its final dividend is under review. It could be forced to sell off its prized businesses in Canada, Scandinavia and emerging markets.

Cutting or scrapping the final dividend would hit Britain's pension funds because most RSA investors own the shares to get the income that the dividend provides.

A fund manager said: "This has been an absolute shambles. Cutting again would add insult to injury. Perversely, they might get away with not paying the final dividend at all if it meant they didn't have to sell the crown jewels."

For RSA watchers, recent events are all too familiar. In 2003, Royal & Sun Alliance, as it was called then, was on the brink of collapse, after shareholders refused to back a rights issue and forced out the chief executive Bob Mendelsohn.

In came Andy Haste, a relative unknown, who set about cleaning up the group. By the time he quit in 2011, handing over to Lee, RSA was seen as a tightly run ship – not the most exciting company but respected at its unglamorous job. As recently as 2010, Haste thought the company was strong enough to try to buy Aviva's non-life operations in Britain, Ireland and Canada for £5bn – though the approach came to nothing.

RSA's share price rose along with its improved reputation but after falling since early November they now stand at 91.04 – their level two months into Haste's reign. The insurer has got three months to sort out its mounting problems or face a crippling credit rating downgrade.

"It would be 'Goodnight Vienna' if the rating went to BBB+," said Panmure Gordon analyst Barrie Cornes. "I think they just bought themselves three months. They have to do something before then."

Analysts think RSA needs about £500m in extra capital to put its finances on a solid footing, but Scicluna's options are limited. With no chief executive, investors may be unwilling to support a rights issue to raise the cash.

RSA has commissioned accountants PwC to report on its business practices by next month. The ousted former Irish boss, Philip Smith, has claimed his actions were in line with group policies and some analysts fear PwC could unearth widespread problems.

The company could sell some operations but coveted businesses, such as its Canadian and Scandinavian arms, are also the ones it needs to generate future profits.

If selling off assets is too unpalatable, another option to reduce the strain on capital would be to pass on some of them to a reinsurer. But, again, this option would rob RSA of the future returns from those assets.

Salvation of sorts could come in the form of a takeover, ending years of speculation about RSA being bought. Cornes said Allianz, Zurich or another big insurer could buy the company and sell off parts it does not want but they would need to act quickly.

"If RSA are going to raise capital, I suspect they would bring forward their results to the end of January and announce it then, which is why someone wanting to buy the business has until the middle or the end of January. Once the capital is raised, that will be it."